Presentation Materials
for the 5th Fiscal Period Ended August 2020

Securities Code: 3488

Basic Principles and Characteristics of XYMAX REITXYMAX REIT determines the value of individual properties to maximize unitholder value. We fully utilize our strength inManagement, Assessment, and Sourcing based on the knowledge and know‐how of the XYMAX Group, which has Japan’s
No.1 track record in property management.
Terms

Definition

Estimated value atthe end of period

Indicates the acquisition value appraised by the appraisers or the research
price based on the Articles of Incorporation of XYMAX REIT and the“Ordinance on Accountings of Investment Corporations” (Ministry of
Finance Ordinance No. 47 of 2006, as amended) with the last day of thecurrent fiscal period as the research dateUnrealized gain

Estimated value of real estate, etc. at the end of period – book value atthe end of period

LTV based on total
assetsBalance of interest‐bearing liabilities / total assets

Appraisal LTV

Balance of interest‐bearing liabilities / (total assets + unrealized gain)

Net asset per unit

(Net asset‐total distribution)/ total number of investment units issued andoutstanding

NAV per unit

(Net asset + unrealized gain‐total distribution) / total number ofinvestment units issued and outstanding

Acquisition price

The sales price of each trust beneficiary right indicated in the trust
beneficiary rights sales agreement, and does not include consumption
taxes, local consumption taxes and brokerage fees, etc.

Contents

I.

Overview of the Financial Results& Investment Management Report

II. Earnings Forecasts and the Growth Strategy

III. ESG

Appendix

3

15

33

39

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios arerounded off to the first decimal place.
 The following abbreviations of property names are used.
XYMAX Nishi‐Shimbashi Building : Nishi‐Shimbashi

XYMAX Iwamotocho Building : Iwamotocho

XYMAX Shinjuku‐Gyoen Building : Shinjuku‐Gyoen

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building: Higashi‐Azabu

XYMAX Higashi‐Ueno Building : Higashi‐Ueno

XYMAX Hachioji Building: Hachioji

Muza Kawasaki

Life Kawasaki Miyuki Store: Kawasaki Miyuki Vita Seiseki‐Sakuragaoka: Seiseki‐Sakuragaoka

Life Fukuizumi Store: Fukuizumi: Sendai

Renaissance 21 Chihaya: ChihayaHotel Vista Sendai: Kamiyacho: Muza2Overview of the Financial Results &Investment Management ReportOverview of the Financial Results & Investment Management Report

Property Portfolio: Impact of COVID‐19
Requests for rent reductions or waivers or cancellation of lease agreements from tenants of office and retail propertiesare limited. Temporary deferment of payments or allocation of rent from security deposits has been conducted for sometenants that requested rent reductions or waivers.

┃Impact on portfolio management┃

OfficeRequests for rent reductions or waivers: 6/20 tenants (Percentage to the total portfolio rent: 3.5%)→ Rent reductions or waivers: None
Deferment of payment: 1 tenant (Percentage to the total portfolio rent: 0.3%)
Allocation of rent from security deposits: 1 tenant (Percentage to the total portfolio rent: 0.2%)
Requests for cancellation of lease agreements due to the spread of COVID‐19: None
Rent collection rate excluding deferment of payments: 100%

Request for rent reduction: 1/1 tenant (see page 20‐21)Requests for rent reductions or waivers: 2/134 tenants (Percentage to the total portfolio rent: 0.5%)→ Rent reductions or waivers: None
Requests for cancellation of lease agreements due to the spread of COVID‐19: None
Rent collection rate excluding deferment of payments: 100%

RetailHotel
Others (Residential)

Requests for rent reductions or waivers: 9/70 tenants (Percentage to the total portfolio rent: 7.5%)→ Rent reductions or waivers: None
Requests for cancellation of lease agreements due to the spread of COVID‐19: 3 tenants
Rent collection rate: 100%

Partial impact on leasing and repair

Postponement of schedule, delays in delivery of construction materials, etc.

┃Response to Impacts┃
 In principle, we respond to tenants’ requests for rent reductions and waivers in accordance with the provisions of respective lease agreements. We also respond to eachtenant individually, after considering the details of their request, their business, and financial circumstances, based on the Financial Services Agency’s Consideration toCompanies in Relation to the Payment of Rent (Request).
To prevent the DPU from falling, we have chosen to prioritize temporary payment deferrals and appropriations from security deposits.
 Although the stagnation in negotiations associated with the declaration of a state of emergency has caused some delays in leasing activities, new contracts also have beensigned after the declaration of the state of emergency.
 Due to a delay in the delivery of some construction materials, on several occasions it was difficult to do repair work within the original budget. In response, we reviewed
priorities of planned works, then carried out the works according to the order of priority with full cooperation of property managers.

4Overview of the Financial Results & Investment Management Report

Overview of Financial Results (1)Operating revenue was 1,364 million yen, down 0.3% from the latest forecast; profit was 724 million yen, up 2.9%.
Unit: million yen

Forecast
for the 5th FP(A)

Operatingrevenue
Operatingexpenses
OperatingincomeOrdinary income

Net income

1,368
615
752
704
703

Actual results
for the 5th FP
(B)

1,364
592
771
725
724

Difference(B)‐(A)

-3
-22
19
20
20

Main factors for difference(+: Incremental factors, – : Decremental factors)

Convertto DPU

Operating revenue
Increase in rent revenue+3.7 million yen+16 yenIncrease in lump sum
income such as key money+5.6 million yen+25 yenDecrease in utility revenues
compared to the forecast‐9.6 million yen‐43 yenDecrease in repair costs
compared to the forecast+8.3million yen+37 yenDecrease in utility costs
compared to the forecast+10.4 million yen+46 yen+2.5million yen+11 yen+1.5million yen+6 yenOperating expenses

Unrealized budgetedleasing costs

Non‐operating income
and expenses

Distribution perunit (yen)* Days of 5th FP: 184 days

3,150

3,242

92

Decrease in interest
expenses compared to theforecast

5

Overview of the Financial Results & Investment Management Report

Overview of the Financial Results (2) — Occupancy rates by Asset TypePortfolio

Financial Status

Asset size

12 properties
33,040 million yen

Interest‐bearing liabilities
at the end of period

Estimated value at theend of period

43,225 million yen

LTV based on total assets

9,727 million yen

Net asset per unit

101,100 yen

NAV per unit

144,643 yen

Unrealized gain

(Unrealized gain ratio 29.0%)

NOI yield*

6.0%

11,680 million yen
31.8%(Appraisal LTV 25.1%)

Occupancy Rates by Asset TypeAs of the end of
2nd FP

As of the end of
3rd FP

As of the end of
4th FP

As of the end of
5th FP

VS. previous FP

Entire portfolio

98.9%

98.8%

98.7%

99.2%

+0.5%

Office

98.8%

99.5%

100.0%

98.9%‐ 1.1%

99.1%

99.5%

100.0%

99.6%‐ 0.4%

Retail100.0%

100.0%

100.0%

100.0%‐

Hotel

100.0%

100.0%

100.0%

100.0%‐

Others (Residential)

95.1%

92.7%

91.0%

96.7%

+5.7%

(exc. retail spaces and obligatedresidences)* NOI yield: annualized actual NOI for the 5th FP ÷ total acquisition price6

Overview of the Financial Results & Investment Management Report

Financial Status
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness and provides flexibility in financing.
┃Lender foundation┃┃Borrowing status (as of the end of 5th FP)┃As of the end of 5th FP

 Constructing a wide range of and stable lender formation mainly with mega banks andlocal banks that have a financial and business relationship with sponsors

Balance ofinterest‐bearing debts

Average remaining
period11.68 billion yen

Mizuho Bank

23.2%

SMBC

18.4%

MUFG Bank

13.3%

Nishi‐Nippon CB

8.6%

Fukuoka Bank

8.6%

13 companies

Resona Bank

7.6%

Shinsei Bank

5.0%

Borrowing amount

Hiroshima Bank

4.3%

11.68

Aozora Bank

2.6%

billion yen

Chiba Bank

2.6%

Higo Bank

2.6%

Fukoku‐life

2.6%

Hokkaido Bank

0.9%

Average interest rate

1 years 9 months

Number of financial
institutions

0.624%

Fixed interest rate
ratio

Long‐term loanratio

LTV based on
total assets

86.6%

93.0%

31.8%

Maturity dates of interest‐bearing debts (after new
borrowing at September 1st, 2020)

After new borrowing at September 1st, 2020

(million yen)
5,000

Mizuho Bank

29.8%

SMBC

16.8%

MUFG Bank

12.1%

Nishi‐Nippon CB

7.8%

Fukuoka Bank

7.8%

13 companies

Resona Bank

7.0%

Shinsei Bank

4.5%

Borrowing amount

Hiroshima Bank

3.9%

12.78

Aozora Bank

2.3%

billion yen

Chiba Bank

2.3%

Higo Bank

2.3%

Fukoku‐life

2.3%

Hokkaido Bank

0.8%

4,250
4,000
1,100

New borrowing forpurchase of Fukuizumi

3,000

3,088
2,796

2,646

2,000
3,150
1,000

0

End of 6th FP
第6期末(FP
endingFebruary 2021)
2021年2⽉期

End of 7th FP
第7期末(FP
endingAugust 2021)
2021年8⽉期

End of 8th FP(FP第8期末
endingFebruary
2022)
2022年2⽉期

End of 9th FP(FP第9期末
endingAugust2022)
2022年8⽉期

End of 10th FP
第10期末
(FP
endingFebruary
2023)
2023年2⽉期

End of 11th FP
第11期末(FP ending
August 2023)
2023年8⽉期

End of 12th FP
第12期末(FP ending
February 2024)
2024年2⽉期

Number of financial
institutions

7

Overview of the Financial Results & Investment Management Report

Acquisition of New Property (Life Fukuizumi Store)
We believe that the acquisition of this property, which is expected to provide a high degree of business continuity, willcontribute to improving the quality of our portfolio and unitholder value.
┃Investment highlights┃
Life Fukuizumi Store The Acquisition of the property is expected to increase the
DPU by approximately 60 yen in 6th FP in cruising periods.
 The acquisition is through face‐to‐face negotiations
leveraging sponsor group customer base.
 The acquisition will enhance portfolio stability because theproperty is leased by grocery supermarket with minimal
influence from COVID‐19.

┃Overview┃┃Analysis┃
 Features of property

Acquisition price1.065 billion yen

Appraisal value

1.09 billion yen

 It is a two‐story store with 144 parking lots adjacent to Route 36, which is a community
road in the neighborhood. The store format is highly convenient for short‐time shopping.

Appraisal NOI yield

4.8%

 Overview of the surrounding area

Appraisal NOI yield after
depreciation*

4.4%

Location

444‐1, Kami, Nishi‐ku,
Sakai‐shi, Osaka As a suburb of three major metropolitan areas, the population in the trading area is theaverage level:approx. 29,000 people in 1 km radius, 103,000 in 2km, and 218,000 in 3km radius

Access

Otori Station on the JR
Hanwa Line,
12 minutes on footLeasable area

3,309.29㎡

 Population composition in current trading areas is particularly high for people in their
30s and 40s, followed by people under 10, indicating that the market has many younger
families.
 This location is suitable for supermarkets as the percentage of households with one
person is low, and the percentage of households with two or more persons is high.

* NOI yield after depreciation = (Appraisal NOI (direct capitalization method)－Depreciation) ÷ Acquisition priceDepreciation was calculated by XYMAX REIT, and may defer from the actual amount.

8

Overview of the Financial Results & Investment Management Report

Actual results of rent increase through tenant replacements
We have achieved a 515,000 yen increase in monthly revenue through 5th FP tenant replacements.

┃Status of tenant replacement┃ ・Seven office properties (exc. obligated residences) and Muza
( tsubo)

(%)

500

50
No change
Rent decreasedRent increased

400

Rentdecreased
increased
Rent

350.97 tsubo

40

348.38 tsubo

300

248.49 tsubo(2 spaces)

30

Higashi‐Ueno:
68.43 tsubo (1 space)% of increase *3

169.50 tsubo

approx.

200

2097.59 tsubo
100

5th FP replacements

Kamiyacho:
29.16 tsubo (1 space)% of increase *3
10

+51%

approx.

+25%

Rent
increase

Rent
increase

Rent
increase

Rent
increasetsubo

218.64144.66318.53

tsubo

tsubo

tsubo

Rent
increase
97.59 tsubo

1st FP

2nd FP

3rd FP

4th FP

5th FP

1st FP

2nd FP

3rd FP

4th FP

5th FP

Accumulated track recordof 5 FPs

Total rent
increased /month

30,925 yen(+5.4%)

561,548 yen(+15.2%)

266,055 yen(+12.4%)

2,672,905 yen(+45.1%)

515,680 yen(+39.4%)

4,047,113 yen(+29.6%)% of replacementswith higher rent *1

17.6%

88.0%

85.3%

91.4%

100.0%

69.2%

Surrender rate *2

4.2%

3.5%

2.0%

4.3%

2.3%

3.2%

61.85

0

0

*1 Rate of replacements with higher rent: area with higher rent replacement of seven office properties (exc. obligated residences) and Muza ÷ total replaced area of each property*2 Surrender rate: surrendered area of seven office properties (exc. obligated residences) and Muza for each FP ÷ total leasable area of each property*3 Rate of rent increase: (monthly unit rent that includes CAM revenue after tenant replacement or after renewal – monthly unit rent that includes CAM revenue before tenant replacement or before

renewal)/monthly unit rent that includes CAM revenue before tenant replacement or before renewal

9Overview of the Financial Results & Investment Management Report

Actual results of rent increase through contract renewals
We have achieved an approximately 3,142,000 yen increase in monthly revenue through 5th FP contract renewal upward
rent revisions.

┃Status of contract renewal┃・Seven office properties (exc. obligated residences) and Muza
( tsubo)

2,000
1,600

1,945.54 tsubo

No change
Rent increased

1,935.20 tsubo

(%)

16

1,277.48 tsubo

Percentage of change

12

1,271.69 tsubo

5th FP renewals (20 spaces);

1,200
800

Renewals with higher rent: 8 spaces

8716.54 tsubo

Rent
increased

Rent
increased

1,408.96
Rent
increased

400

Rent
increased
468.62 tsubo

747.50tsubo

01,107.07

tsubo

tsubo

Shinjuku‐Gyoen:
995.27 tsubo (6 spaces)% of increase *2
4approx.

+17%

Nishi‐Shimbashi:
111.80 tsubo (2 spaces)% of increase *2

approx.

0+6%

1st FP

2nd FP

3rd FP

4th FP

5th FP

1st FP

2nd FP

3rd FP

4th FP

5th FP

Accumulated track recordof 5 FPs

Total rent
increased/month

0 yen
(0%)

909,380 yen(+8.5%)

2,255,763 yen(+9.8%)

633,769 yen(+11.0%)3,142,150 yen(+15.4%)

6,941,062 yen(+11.6%)% of renewals withhigher rent *1

0%

58.8%

72.4%

36.7%

57.2%

52.2%

Rent increase through 5th FP
replacement/contract renewal

Approx.

3,650,000
yen/month

Cumulative rent increase throughreplacement/contract renewal
until 5th FP

Approx.

10,980,000 yen/month

15.0% increase from beginning of 1st FP*1 % of renewals with higher rent: renewed area with higher rent of seven office properties (exc. obligated residences) and Muza ÷ total renewed area of each property*2 % of increase: (monthly unit rent that includes CAM revenue after tenant replacement or after renewal – monthly unit rent that includes CAM revenue before tenant replacement or before

renewal) ÷ monthly unit rent that includes CAM revenue before tenant replacement or before renewal

10Overview of the Financial Results & Investment Management Report

Internal Growth in the 5th FP (1)With the maximum use of the management strength of the sponsor group, we firmly successfully finalized negotiations
started before the spread of the impact of COVID‐19.

Tenant Replacement

Tenant Replacement

XYMAX Higashi‐Ueno Building

XYMAX Hachioji Building

Immediate replacement with high unit
rent by accurately grasping market
trends using the network of thesponsor group.

Succeeded in capturing new demand for
suburban satellite office.

 Determining that the property could offer at a higher rent level
than the surrounding market through market analysis using

the network of the sponsor group.
 Received favorable applications amid expanding impact of
COVID‐19 infection.
 Given the uncertain outlook, successfully concluded
profitable deals avoiding the negative impact of market
turmoil. Almost no downtime and able to close the deal

with favorable terms and conditions.

Rate of rent increase by this replacement
approx. 51.0%**

 We have long been developing a leasing strategy thatemphasizes superiority of specifications over competitors
in the area.

 We secured the needs for satellite offices by taking
advantage of characteristics of the area against a backdrop of the
spread of COVID‐19.

 Achieved successful conclusion due in part to thesponsor group’s knowledge of satellite office business.

Concluded with the same rent as previous
tenant ** Rate of rent increase: (monthly unit rent that includes CAM revenue after tenant replacement or after renewal – monthly unit rent that includes CAM revenue before tenant replacement or

before renewal)/monthly unit rent that includes CAM revenue before tenant replacement or before renewal

11Overview of the Financial Results & Investment Management Report

Internal Growth in the 5th FP (2)Contract Renewal

Parking Lot Renewal

XYMAX Kamiyacho Building

XYMAX Iwamotocho Building

Realized a rent increase amid COVID‐19
by building good relationships withtenants through long‐termmanagement.

Achieved renewal with higher rent
through negotiations based on accurate
assessment of demands of thesurrounding market.

 Building strong relationships through years of property
management by the sponsor group.
 Continuing meticulous response to improve tenantsatisfaction even after the previous renewal with a rent
increase.

 Identified a high level of demand for this parking lot, which canaccommodate vehicles with high roofs, by gathering information
on rents in nearby areas.

 Achieved future renewal with a rent increase throughnegotiation reopened focused on the timing of tenants, despite
renewal negotiations for higher rent being temporarilysuspended due to the spread of COVID‐19.

 Convinced tenants (both inside and outside the office) of thedeference between rents in nearby areas and existing rents, andachieved renewal with higher rents from three tenants.

Rate of rent increase of this renewal*
approx. 13.3% *Rate of rent increase of this renewal*

approx. 13.0% ** Rate of rent increase: (monthly unit rent that includes CAM revenue after tenant replacement or after renewal – monthly unit rent that includes CAM revenue before tenant replacement or

before renewal)/monthly unit rent that includes CAM revenue before tenant replacement or before renewal

12Overview of the Financial Results & Investment Management Report

Internal Growth Strategy (1) —Trends in the Rent GapsAs a result of the rent increase through the 5th FP, the rent gap vs. appraisal unit rent has been absorbed.

┃Trend in rent gap for the six office properties*1┃ (exc. retail spaces and obligated residences)
1. Assumed new unit rent:
2. Appraisal unit rent:

Assumed unit rent for new lease contracts at change of tenant, based on XYMAX’s
own market analysis, etc.
Rent unit price adopted in ongoing regular appraisals
As of the end of
1st FP

As of the end of
2nd FP

As of the end of
3rd FP

As of the end of
4th FP

As of the end of
5th FP

16,277 yen

16,524 yen

17,059 yen

17,246 yen

18,048 yen‐+247 yen+535 yen+187 yen+802 yen‐(+1.5%)(+3.2%)(+1.1%)(+4.7%)

1. Assumed new unit rent‐‐

19,732 yen

19,810 yen

19,240 yen

vs. previous FP

‐

‐

‐

+78 yen‐570 yen(% change vs. previous FP)

‐

‐

‐

(+0.4%)(‐2.9%)

Rent gap vs. Assumed new unit
rent

‐

‐

‐15.7%‐14.9%

‐6.6%

‐

‐

‐

0.8%

8.3%

17,526 yen

17,526 yen

17,831 yen

17,948 yen

17,948 yen

‐

0 yen

+305 yen+117 yen

0 yen(+0.0%)

Contracted unit rent
vs. previous FP(% change vs. previous FP)

vs. previous FP

2. Appraisal unit rent
vs. previous FP(% change vs. previous FP)

Rent gap vs. Appraisal unit rent
vs. previous FP

‐

‐

‐

(+0.7%)

‐7.7%

‐6.1%

‐4.5%

‐4.1%

0.6%

‐

1.6%

1.6 %

0.4%

4.7%

*1 Collective term for Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno*2 The various unit rents: using a monthly unit rent that includes CAM revenue, to which is applied a weighted average in proportion to the leased floor area

13

Overview of the Financial Results & Investment Management Report

Internal Growth Strategy (2) — Potential for rent increase in Future Renewal
We will continue to aim the internal growth by increase rent through negotiations tailored to each tenant's situation.

┃Floor area scheduled for contract renewal at the six office properties*1┃(exc. retail spaces and obligated residences)

Total leasable area at the six office properties: 4,485.88 tsubo( tsubo)■Spaces without rent gap in both 1 and 2, below

1,600

1,400

1,333.90(14 spaces)

1,200

291.371,000

1,033.60(13 spaces)

600

765.52

Spaces have 10% or more rent gap vs. appraisal unit rent

47.92(1 space)172.2495.84 (2 spaces)■2. Spaces have rent gap vs. appraisal unit rent

(4 spaces)(1 space)
800■1. Spaces have rent gap only vs. assumed new unit rent

994.61

Already renewed andabsorbed rent gap(9 spaces)(10 spaces)

425.06(5 spaces)

400356.63548.33200(7 spaces)

144.66(2 spaces)

68.43

359.07(4 spaces)(1 space)(4 spaces)

311.15211.97(3 spaces)(2 spaces)

6th FP

7th FP

47.92(1 space)0

8th FP

9th FP*1 Collective term for Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno*2 The various unit rents: using a monthly unit rent that includes common area maintenance revenue, to which is applied a weighted average in proportion to the leased floor area

14

Earnings Forecasts andthe Growth Strategy

Earnings Forecasts and the Growth Strategy

Assumptions for Earnings for the 6th FP and 7th FP
Given the slowness of the leasing market due to the impact of COVID‐19, we have formulated a plan that incorporates a limited
downside in the earnings forecasts for the 6th and 7th FP.
[6th FP]
Assumed occupancy rate: 97.3% compared with 98.9% at the end of the 5th FP (see page 6)

OfficeProperty
management
relatedRetailBased on the status of requests for reduction of rents or temporary deferment from tenants andthe terms of the respective lease contract, we do not anticipate any major changes in the 6th
and 7th FPs.

Hotel

Negotiations are ongoing regarding a request from the operator for a rent reduction and waiver.
The forecast is as follows because it is difficult to reasonably estimate the outcome of thenegotiations.
Fixed rent: 0 yen in and after November 2020
Variable rent: ‐3 million yen in the 6th FP and 0 yen in the 7th FP

OthersCorporation
management
related[7th FP]
Assumed occupancy rate: 97.9%(Reference) Lowest annual average occupancy rate of 95.9% after the global financial crisis (FY
2010, see page 25)

Due to a steady replacement situation, no significant changes are expected.

 SG&A (sales, general, and administrative expenses)
Posting general unitholders’ meeting related expenses in the 7th FP
 Non‐operating expenses
Posting the expenses related to the refinancing of 4.25 billion yen at the end of January 2021 (during the 6th FP).
At the time of this refinancing, it was assumed that the maturity of 1.1‐billion‐yen bridge loan borrowed to fund theacquisition of Fukuizumi would be extended (resulting increase of interest expenses).
16

Earnings Forecasts and the Growth Strategy

Earnings Forecast for the 6th FP ending February 2021
Unit: million yen

Actual results
for the 5th FP(A)

Initial forecast
for the 6th FP

Forecast forthe 6th FP(B)

Difference(B)‐(A)

Operatingrevenue

1,364

1,323

1,270

‐94

Operatingexpenses

592

599

601

9

Operatingincome

771

723

668

‐103

725

663

601

‐123

Net income

724

662

600

‐123

Days

Convertto DPU

Operating revenue

Ordinary
incomeDistribution
per unit (yen)Main factors for differences in the
result for the 5th FP and forecasts forthe 6th FP(+: Incremental factors,–: Decremental factors)

3,242
184

2,966
181

2,688
181

‐554
‐3

Increase in Fukuizumi rent
revenue+30.8 million
yen+138 yen

Decrease in hotel rent

‐104.8 millionyen‐469 yen

Absence of lump sum
income‐12.3 million
yen‐55 yen‐11.3 million
yen‐50 yenOperating expenses
Increase in lease costs

Non‐operating revenues and expenses
Increase in borrowing
related expenses, Increase
in interest expenses due to
new borrowings‐19.9 million
yen‐89 yen17

Earnings Forecasts and the Growth Strategy

Earnings Forecast for the 7th FP ending August 2021
Unit: million yen

Operatingrevenue

Forecast forthe 6th FP(A)Forecast forthe 7th FP(B)

Difference(B)‐(A)

1,270

1,227

-42

Operatingexpenses

601

611

9

Operatingincome

668

615

-52

Ordinary
income

601

562

-38

Net income

600

561

-38

Distribution
per unit
(yen)

2,688

2,515

-173

Days

181

184

3

Main factors for differences in the result for the
6th FP and forecasts for the 7th FP(+: Incremental factors, – : Decremental factors)

Convert to
DPU

Operating revenue
Increase in non‐hotel rental
income+3.8 million yen+17 yenDecrease in hotel rents‐36.4 million yen‐163 yen

Decrease in leasing costs+7.7 million yen+34 yenIncreases in property tax andcity planning tax due torevaluation (predicted)‐7.3 million yen‐32 yenGeneral Unitholders’ meeting
related expenses‐4.3 million yen‐19 yenOperating expenses

Non‐operating revenues and expenses
Absence of borrowing related
expenses+16.4 million yen+73 yenIncrease in interest expenses
due to refinancing‐2.6 million yen‐11 yen18

Earnings Forecasts and the Growth Strategy

Results of Distributions per Unit from the 5th to the 7th FP
The changes in DPU from the 5th to 7th FPs and the main factors behind them are as follows.

5th FP
forecast

5th FP result(FP ended August 2020)

6th FP forecast(FP ending February 2021)

7th FP forecast(FP ending August 2021)

(yen)

4,000
3,500
91

6

Increase in
rent
revenue

Decrease ininterest
expenses
compared to
the forecast

3,000
2,500

Unrealized
budgetedstress

3,150

159

469
25

89

34

32

Increase innon‐hotel
rentalrevenue

Increases inproperty tax
and cityplanning tax
due torevaluation

OthersIncrease in
Fukuizumi
rent
revenue

Unrealized
budgetedleasing costs

2,000
1,500

138

5

Absence oflump sumincomeIncrease inleasing costs

3,242

Decrease inhotel rents

Decrease in
SG&A
expenses

Increase inborrowing
relatedexpenses
Increase ininterest
expensesdue to new
borrowings

Decrease inleasing
costs

2,688

163

Decrease inhotel rent73

46

Absence ofborrowing‐
relatedexpenses

GeneralUnitholders’meeting
relatedexpenses
Increase ininterest
expensesdue torefinancing

39

Others

2,515

1,000
500
0
5th FP forecast(FP ended
August 2020)

5th FP result(FP ended
August 2020)

6th FP forecast(FP ending
February 2021)

7th FP forecast(FP ending
August 2021)

19

Earnings Forecasts and the Growth Strategy

Recent status of Hotel Vista Sendai
As the GOP, which is the source of rent payments, has "evaporated" since late March 2020, the operator has requested
negotiations on rent and are still continuing.
┃Details of negotiations with the operator and responses by XYMAX REIT┃

 The operator requested to discuss the rent payment because of a backdrop of deterioration in cash flows due to a significant
decrease in GOP.
→From the standpoint of supporting the operator, we deferred payment of one month fixed rent as cash flow support.
The amount of deferred rent d can be allocated from security deposits.

 After the deferment was granted, we received another request for a rent reduction, and the negotiations are ongoing.
┃Incorporation into the earnings forecast and future policies of XYMAX REIT┃

 Since there was no impact on P/L at the time of the deferment of the payment, it was not incorporated into the earnings forecast.
 Negotiations on the rent reduction are currently underway, and it is difficult to reasonably estimate the outcome of thenegotiations. In addition, because the NOI of the property constitutes more than 10% of the total NOI of XYMAX REIT‘s portfolio,
XYMAX REIT’s performance will be materially affected by the outcome of these negotiations.
→Es mate rents for November 2020 onward at the most conserva ve levels at this me and formulate earnings forecasts forthe 6th FP and 7th FP.

 After the negotiations are resolved, we plan to disclose earnings forecasts promptly based on the outcome of the negotiations.

20

Earnings Forecasts and the Growth Strategy

Actual Results of Hotel Vista Sendai
RevPAR fell significantly from the previous year due to the impact of the spread of COVID‐19.
Signs of both RevPAR and GOP recovery are being observed, reflecting a recovery in domestic demand that constitutes
the main target segment.
┃Operations track record┃
4th FP (FP ended February 2020)
120%■RevPAR (compared to same month of the previous FP)

100%

89.9% 91.2%

106.5%

97.7% 94.8%

101.8%
94.7%■Room occupancy rates

98.0%

95.2%

89.9%

80%

5th FP (FP ended August 2020)

After starting GoTo Travel
Campaign

State of emergency
declaration period

85.0%
72.5%

58.1%

60%
45.2% 44.6%

38.7%

40%
18.7%

20%

8.0% 9.2%

7.1% 8.2%

Apr. 20202020年4⽉

May 2020
2020年5⽉

24.7%

37.9%

30.4%

0%
Sept. 20192019年9⽉

Oct. 20192019年10⽉

Nov. 20192019年11⽉

Dec. 20192019年12⽉

Jan. 20202020年1⽉

Feb. 20202020年2⽉

Mar. 20202020年3⽉

June 20202020年6⽉

July 20202020年7⽉

Aug. 20202020年8⽉■Comparison of GOP (index) before rent payments
300*Index using the January 2020 GOP as 100

212

211

221
158

200

100

100

143
24

10

48

0
‐100
2019年9⽉
Sept.
20192019年10⽉
Oct. 20192019年11⽉
Nov. 20192019年12⽉
Dec. 20192020年1⽉
Jan. 20202020年2⽉
Feb. 20202020年3⽉
Mar. 2020

‐66

‐60

2020年4⽉
Apr. 20202020年5⽉
May 2020‐22
2020年6⽉
June 20202020年7⽉
July 20202020年8⽉
Aug. 202021

Earnings Forecasts and the Growth Strategy

Risk Tolerance based on Property Diversification and Tenant Diversification
The status of diversity of asset type and tenants in the portfolio are shown below, and multi‐tenant assets are welldiversified.
┃Portfolio diversification (by asset type, as of the end of 5th FP)┃Number of assets: 12 buildings/Number of tenant: 225
Business Type of multitenant retail properties

OfficeRetailHotel Others(residential)

Multi‐tenant

Single‐tenant

50.5%

12.2%

19.7%

9.6%

7 buildings (70 tenants)

1 building(18 tenants)

2 buildings(2 tenants)

1 building

8.0%

1 building( 134(1 tenant)tenants)(Based on rent revenue)

School&Education
8%

Construction business 3%

Medical andWelfare11%

Retail26%Service
12%

Restaurants
24%

Financial andInsurance
17%┃Office tenant diversification (excluding obligated residences)┃
Based on rental area

Based on capital
200 tsubo or more
200坪以上100‐200 tsubo
100坪以上〜200坪未満
50坪以上〜100坪未満
50‐100 tsubo
50坪未満
less than 50 tsubo

9.72%

Based on business type

3.43%

20.04%
25.28%

Leased floorarea
6,194.31
tsubo

32.47%

37.36%

Number oftenants
60 tenants

Wholesale

35.45%

Merchandise

24.27%

0.3‐1 billion yen

IT

15.82%

50 ‐ 300 million yen

Others9.41%

Medical and Welfare

4.29%

Lawyers and Accountants

3.43%

Real estate business

3.26%

Retail3.10%

Restaurants

0.96%

Less than 50 million yen
Law Firms and Others

18.09%
1.43%

27.64%

Listed companies and its
subsidiaries
More than 1 billion yen

24.54%

22

Earnings Forecasts and the Growth Strategy

Workplace Direction by Company Size
There are differences in the direction of the post‐COVID‐19 workplace depending on the size of the company. Comparedwith large companies, a higher percentage of small and medium‐sized companies, the main target of office buildings
owned by XYMAX REIT, are more likely to return to the same office use pattern as they did prior to the outbreak of
COVID‐19 and less likely to downsize main offices.
┃Direction of the Workplace “After COVID‐19” – By Company Size┃
Large companies

Small‐sized companies

Medium‐sized companies(Fewer than 100 employees)(n=834)(Fewer than 1,000 employees)(n=631)(1,000 or more employees)(n=326)

Use both the main office and telework

39.8%

46.4%

63.8%

Enhance telework and downsize main office

13.5%

12.4%

20.2%

Return to a state not much different from that before COVID‐
19

31.2%

26.3%

14.4%

Expand main office more than before

1.6%

0.8%

1.2%

Disperse offices to suburbs

2.5%

2.5%

4.9%

Review office design in consideration of health and infections
disease prevention (hygiene control, population density)

18.5%

23.5%

31.6%

Review office design in consideration of health and infections
disease prevention (ventilation, floor area, flow line, etc.)

11.0%

14.7%

18.7%

Place more importance on BCP measure than before

13.2%

23.5%

26.1%

Other

3.0%

2.7%

4.0%

Don't know

6.1%

8.2%

6.4%

Source: Survey of Tokyo Metropolitan Companies on Workstyles and the Workplace August 2020” by XYMAX Real Estate Institute** “Metropolitan Areas Office Demand Survey Spring 2020” is based on a survey distributed to tenant companies currently occupying office buildings managed and operated by the XYMAXGroup nationwide, companies registered to use the ZXY satellite office service, and XYMAX INFONISTA client companies (1,795 valid responses). The survey period was June 4, 2020 to June
16, 2020. Including multiple response.

23

Earnings Forecasts and the Growth Strategy

Office Operations and Infectious Control in Post‐COVID‐19
We implement infection control measures through concentration of management and operating know‐how.

┃Office operation to prevent the spread of COVID‐19┃┃Rating of safety and security of office┃ Thoroughly implementing COVID‐19 countermeasures among themanagement and cleaning staff (wearing face masks, washing hands,
disinfecting, gargling, etc.)

0%

20%

15.0%

 Introducing alcohol‐based disinfectants andfoot pedal stands in common spaces

60%

41.4%

⾮常にそう思う
Very much Replacing conventional toilet faucets with
automatic faucets

40%

ややそう思うSomewhat

80%

21.8%
あまりそう思わない
Not that much

2.3%

100%

19.6%

まったくそう思わない
Not at all

わからない
Don’t know
Number of samples: total(n=1,795)

In a national survey that asked, “Do you think the offices you
currently occupy provide a safe and secure environment forworkers?” only 15% of respondents answered “Very much” The
COVID‐19 crisis may have raised people's awareness of hygiene,
safety, and security.

 Suspending use of
toilet air‐jet handdryers

Source: Survey of Tokyo Metropolitan Companies on Workstyles and the
Workplace August 2020” by XYMAX Real Estate Institute┃ Prepared Stop COVID‐19! Countermeasure Proposal List by compiling feedback from property management sites┃
Stop COVID‐19! Countermeasure Proposal List
• Gathered issues related to COVID‐19 countermeasures andsolutions at every site of the sponsor group from early March,when COVID‐19 started to spread.
• Created Stop COVID‐19! Countermeasure Proposal List for building
owners based also on the “new lifestyle,” from among more than
50 proposed measures.
• In response to the increased infectious disease countermeasures,a second list has been proposed.

提案内容(取り組み・⼯事)
トイレの蓋を閉めて流すよう注意喚起

並ぶ際は距離を取るよう注意喚起

ペーパータオルホルダー
設置⽬的

トイレ洗浄⽔の⾶沫⾶散の防⽌。

エレベーターホールやトイレ等で並んでいる⼈同⼠で⼀定距離(ソーシャルディスタンス)を保つため。

ハンドドライヤーによる⾶沫⾶散の防⽌。

提案内容(取り組み・⼯事)
エレベーターのボタン等に抗菌シート貼付

抗菌⽤スプレーソーシャルディスタンスのマーク設置

エレベーターのボタン・ドアノブ等の菌対策

エレベーターのボタン・ドアノブの菌対策

ソーシャルディスタンス確保

アクリル板の設置

⾃動⽔栓への更新

⾶沫感染防⽌のため。

⽔栓への接触による感染防⽌のため。

サーマルカメラの設置

抗菌シート

⽬的

発熱者の把握、⼊館阻⽌。
コロナ対策のアピール。

除菌マットの設置
靴裏の除菌のため。

24

Earnings Forecasts and the Growth Strategy

Office Properties Advantages in Post‐COVID‐19┃Advantages of our office assets┃
Post‐COVID‐19 office demands could decrease to some extent due to how the pandemic has worsened the economic
environment and changed the way offices are used. However, we believe that the offices owned by XYMAX REIT, whichhave certain strengths in “good locations” and “high‐quality management”, have an advantage post‐COVID‐19.
The fact that our offices maintained high occupancy rates in comparison with other J‐REIT offices following the global
financial crisis is evidence of this advantage.

 Good location

3–5 minute walk to the nearest station that is easy to access, suitable for consolidation of head
office functions, etc.

 High quality ofmanagement

Providing a safe and secure office environment through meticulous management based on PM
know‐how and flexible responses to diverse tenant demands.

 Potential for Suburban
Satellite Offices

Respond to the offices becoming more hub and spoke‐oriented and expanding satellite office in thesuburbs to eliminate the gap between offices and homes (Tokyo Metropolitan Area Offices).

┃Average Occupancy Rate of office┃(%)

Lowest annual average occupancy rate

100%
98%
96%

FY 2010

98.7%

95.9%

98.9%

97.6%
96.4%

96.4%

97.7%

97.7%

96.7%

96.6%

95.9%

96.8%

96.5%

99.2%

99.7%

99.0%

99.2%

97.8%

97.4%

98.6%
97.8%

97.2%
96.4%
95.3%

94%
94.3%

94.3%
93.2%

92%
90%

98.6%

Average occupancy rate of XYMAX REIT seven office properties *1

92.4%

The global
financial crisis

Average occupancy rate of J‐REIT office properties*2

88%
2006/04

2007/04

2008/04

2009/04*1 Average occupancy rate of the seven office properties in each FP.
*2 Average occupancy rate of the 30 J‐REITs for office properties in each FP.

2010/04

2011/04

2012/04

2013/04

2014/04

2015/04

2016/04

2017/04

2018/04

2019/0425

Earnings Forecasts and the Growth Strategy

Future Management Policy amid COVID‐19 (1)While fully recognizing changes in the market environment, we will work to maintain stability and prepare for renewed
growth once the market environment improves.
Understanding of the Current Situation• Due to the influence of COVID‐19, companies have begun to seek out office strategies, and there are changes in the way
offices are being used. However, there are still certain demands for using the head office.

Internal
Growth• In particular, large companies have accelerated making workstyle reforms in response to increased awareness of BCP as well as
employee health and safety. In addition, a demand for suburban satellite offices has emerged.
• When office demand shrink due to an economic downturn or other factors, buildings with the advantages of a good locationand strong management are being selected.
• Retail tenants vary by industry and size, and require judgments based on individual sales and performance.

• Offices: With the rapid expansion of teleworking, there is a sense of a change for office demands. At the same time, therequirement for suburban satellite office is also emerging, though mainly for large companies.

External
Growth• Retail: While there were fluctuations depending on the type of business, some retail properties were less affected by the
impact of the spread of COVID‐19.
• Hotel: There has been a collapse in the supply‐demand balance due to a sharp decline in tourism; We will play close attention
to demand trends.

Financial
Policy• The low LTV level is one of the strengths of XYMAX REIT. Strategic utilization of this is essential.
• Amid the deterioration in financial position of some companies due to the impact of COVID‐19, good lender relations are
essential for stable financial operations.

26

Earnings Forecasts and the Growth Strategy

Future Management Policy amid COVID‐19 (2)Previous Strategies• Eliminate rent gap in six officeproperties* located in 23 wards of Tokyo

Internal
Growth• Consider cutting expenses to the extent
that tenant satisfaction can be
maintained

Current Management Policy

Leasing

Operations• Reduce the risk of existing tenants departure through careful management, including
infection countermeasures• Grasp the situation of office use of tenants regularly through relationships with tenants• Close monitoring of sales trends for retail tenants

Repairs• Repairs such as the work to improve the asset value will be implemented after carefully
considering the timing and cost‐benefit analyses• Leverage the know‐how of the sponsor group to flexibly consider infection
countermeasures• Maintain asset value through executing
appropriate repairs and CAPEX

External
GrowthFinancial
Policy• Leverage the sponsor group’s network to identify changes in the market at an early stage• Determine the market value of individual assets and maintain an uncompromising rent
perspective• For the time being, a certain amount of downtime can be anticipated due to the stagnationof the market, but by taking advantage of good locations and the high quality ofmanagement, we will attract good tenants, even if it takes some time

• Accurately discern the potential ofproperties with scope for internal growth,• Although there have been no major changes in the external growth strategy, we will
and build pipelines
consider the acquisitions properly each asset, while taking into account new needs arising• Maintain unique sourcing, leveraging
from changes in the way of using real estate
sponsor group customer base
• Flexible property acquisition using a low LTV level is an option• Adhere to a certain level of yields even
• Policy to maintain the existing strategy on acquisition
under a challenging acquisition
environment• Strategic use of remaining borrowing
capability, against the backdrop of a low
LTV level• Cooperate with sponsor groups anddeepen lender relationships• Continue strategic use of remaining borrowing capability, against the backdrop of a low LTV
level (31.8% as of the end of 5th FP)• 6th FP refinancing to be implemented after considering both maturity dates and financing
costs• Maintain and enhance financial stability mainly through cash management* Collective term for Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno.

27

Earnings Forecasts and the Growth Strategy

External Growth (1) — Post‐COVID‐19 Portfolio Strategy
XYMAX REIT will grasp the latest changes in real estate demand post‐COVID‐19, while firmly maintaining the investment
perspective used to date. We assume as follows with respect to properties we currently focus on (by asset type) and theinvestment ratio in the near future.
Investment ratio of main asset after the acquisition of Fukuizumi: 92.1%

Investment ratio
After acquisitionof Fukuizumi

Office52.6%

Futureexpectations

Post‐COVID‐19 Investment Strategy

50–55%

Widening the acquisition target to suburban offices due to rising demand
for satellite offices, referring to data of ZXY business, operated by thesponsor.

Retail26.6%

25–30%

Mainly consider properties with higher stable revenue, such as community‐
based retail facilities, including supermarkets, drugstores, and home centerswith strong consumption trends, and land with a leasehold interest.

Hotel

12.9%

10–15%

Closely monitor the recovery in demand for accommodation and the supply
trend of guestrooms in the area where the target property is located.

5–15%

Focus on changes in the way of using real estate following changes inlifestyles and capture investment opportunities by utilizing property
information and real estate usage needs held by the sponsor group.

Others

7.9%

28

Earnings Forecasts and the Growth Strategy

External Growth (2) – Key Points by Asset Type –XYMAX REIT believes that quantity and quality of tenant demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for portfolio growth by comprehensively assessing the factors below by asset type.

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specializing in“lodging” near transportation hubs✔

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

Hotels specialized in stay whose
revenue trends can be analyzed based on
the operational know‐how of the sponsor✔

Properties with a unit rent of 10,000
yen to 20,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

Properties located in areas offering
excellent access to transportation
hubs✔

Properties located within an approximate
5‐minute walk from the nearest station✔

Properties where sales price islower than the market priceof overseas visitors is✔ number
expected to increase

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
29

Earnings Forecasts and the Growth Strategy

External Growth (3) – Status of Acquisition Studies–XYMAX REIT will continue to focus by asset type and consider acquisition of properties in accordance with the portfolio strategy.
We will continue our acquisition activities to determine the fundamental value of the target properties, with an awareness of the balance
between distribution growth and financial soundness.

┃ Acquisition policy ┃┃Borrowing capacity by LTV level┃

 Maintain a price lines firmly with an awareness of the balance
between distribution growth and financial soundness
 Maximize use of the XYMAX Group strengths of assessment andsourcing Assume the investment that is made after assessing the inherent
profitability of the property
 Flexible acquisition through borrowings can also be selected,
depends on investment unit price trends, due to our low LTV level

LTV level after acquisition of Fukuizumi: 33.8%
LTV levelvs. total assets

Possible loan
amountAppraisal LTV

40%

Approx.
3.9 billion yen

32.5%

45%

Approx.
7.7 billion yen

37.1%

50%

Approx.
12.2 billion yen

41.9%┃Properties under consideration┃
Location

Asset type

5 central wards of Tokyo

OfficeCore regional cityHotel(specialized in stay)

23 wards of Tokyo(scheduled to complete at
November 2020)

Others(Corporate dormitory)(100% leased to a single tenant)SourceFocused point

Property managementbusiness relation

With a large rent gap in this market, significant internal growth is able toexpect at the time of lease contract renewal and tenant replacement

Private fund managed by
the sponsor group

Located in a regional economic hub and also with a high level of
tourism resources, there is solid demand for accommodation

CRE client

A stable long‐term lease contract has been concluded with a highly
credit‐worthy tenant, for which a certain revenue is expected30

Earnings Forecasts and the Growth Strategy

Growth image in DPU
Despite a temporary dividend cut due to the impact of COVID‐19, we will continue aiming to increase DPU further
in the future.

┃Stabilized DPU┃ Trend in DPU since IPO, excluding special factors *1+107 yen(+1.8%)

Annual DPU
5,952 yen

Annual DPU
6,059 yen‐129 yen(‐2.1%)

Results
forecasts
Absence of rent revenue
in Sendai*2

Annual DPU
5,930 yen

(3,331 yen)
(89 yen)(3,246 yen)(558 yen)

2,902 yen

3,050 yen

3,052 yen

3,007 yen

3,242 yen

1st FP

2nd FP

3rd FP

4th FP

5th FP

Decrease rent due to occurrence ofdowntime in re‐tenant of large
section of Muza, etc.

2,688 yen

(3,236 yen)

3,300 yen(721 yen)

2,515 yen

6th FP (forecast) 7th FP (forecast)

Near future

Expect a decrease invariable rents in
Sendai*1 Calculated with stabilized DPU that takes into account excluding special factors such as the cost of IPO in the 1st and 2nd FP and taxes and public dues.
*2 Calculated as estimated amount based on the difference between the actual rent for the 4th FP and the forecast for each FP.

31

ESG

ESG

ESG Initiatives (1) Environment
Acquisition of Environmental Certification
Acquired environmental certification for the following properties. XYMAX REIT will continue to promote environmental and energy‐saving measures of owned properties
and improve efficiency of energy use.

┃ CASBEE－Real estate┃┃ BELS ┃Hotel Vista
SendaiXYMAX Nishi‐
Shimbashi Building

Newlyacquisitionof 5th FP

Newly acquisition of 5th FP

Assessment Rank

Assessment
Rank

Rank A★★★

(Very good)

XYMAX
Iwamotocho
Building

XYMAX
Shinjuku‐Gyoen
Building

XYMAX
Hachioji
Building

XYMAX
Higashi‐Azabu
Building

XYMAX Higashi‐
Ueno Building

Assessment Rank

Assessment Rank

Assessment Rank

Assessment Rank

Assessment Rank

Rank A

Rank A

Rank A

Rank A

Rank A(Very good)(Very good)(Very good)(Very good)(Very good)

XYMAX
Higashi‐Azabu Building

Assessment
Rank

★★

┃Acquisition status up to 5th FP┃CASBEE and BELS certification.
*Higashi‐Azabu has obtained

Number of Acquisition ofEnvironmental Certification

7

Acquisition rate(based on total floor area)

42.5%┃Improvement of environmental performance through building/facility renovation ┃ Implementing renovation work for air conditioning in tenant exclusive space, we are working towards
saving energy and reducing environmental burden, in addition to enhancing tenant satisfaction.

┃ Promotion of paperless asset management┃ Working toward to realize paperless workflow at Asset Management Company and promoting resource saving• Introduction of electronic approval system at Asset Management Company• Creating paperless instructions circulation system between the trustee the asset management property┃Installing hydropower sensor faucets┃ Hydropower sensor faucets (used in automaticfaucets for wash basins in restrooms) were
installed to save energy and deal with emergencies
and power outages. The rotation of an impeller
within the power generation
unit caused by water flow
both generates and saves
electricity.
Installed properties: Shinjuku‐Gyoen

33

ESG

ESG Initiatives (2) Social (1)Initiatives for Tenants andLocal Communities
Countermeasures using the Stop COVID‐19!
Countermeasure Proposal List
 Since March 2020, when COVID‐19 started showing signs of
spreading, the sponsor group has been using a compiled listof infection countermeasures for worksites called the Stop
COVID‐19! Countermeasure Proposal List. In cooperation withPM, we are considering and implementing measures tocombat infectious diseases in advance.

Stop COVID‐19! Countermeasure Proposal List
提案内容(取り組み・⼯事)
トイレの蓋を閉めて流すよう注意喚起

並ぶ際は距離を取るよう注意喚起

ペーパータオルホルダー
設置⽬的

トイレ洗浄⽔の⾶沫⾶散の防⽌。

エレベーターホールやトイレ等で並んでいる⼈同⼠で⼀定距離(ソーシャルディスタンス)を保つため。

ハンドドライヤーによる⾶沫⾶散の防⽌。

⾃動⽔栓への更新

提案内容(取り組み・⼯事)
エレベーターのボタン等に抗菌シート貼付

抗菌⽤スプレーソーシャルディスタンスの
マーク設置

抗菌シート

⽬的
エレベーターのボタン・ドアノブ等の菌対策

エレベーターのボタン・ドアノブの菌対策

ソーシャルディスタンス確保

アクリル板の設置
⽔栓への接触による感染防⽌のため。

サーマルカメラの設置

発熱者の把握、⼊館阻⽌。
コロナ対策のアピール。

⾶沫感染防⽌のため。

除菌マットの設置
靴裏の除菌のため。

┃ Introduction of emergency storage boxes in elevators┃┃ Introduction of Disaster‐Relief Vending Machines┃ Emergency storage boxes have been
installed in elevators in six properties asconfinement measures at earthquake
disaster.

 Introduced disaster‐relief vending
machines to provide drinks forfree (by remote control) during
emergencies.

Installed properties: Nishi‐Shimbashi,
Iwamotocho, Shinjuku‐Gyoen, Kamiyacho,
Higashi‐Azabu, Higashi‐Ueno and HachiojiInstalled properties: Higashi‐Azabu,
Higashi‐Ueno, and Hachioji

Initiatives for a Sustainable Society
Signing of Principles for Financial Action for the 21st Century by Ministry of theEnvironment XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, Asset Management Company of XYMAX REIT,
has endorsed the ideas of the Principles and became a signatory on December 27, 2013.

34

ESG

ESG Initiatives (3) Social (2)Initiatives for Employees of the Asset Management Company┃ Qualification support system ┃┃Respect for diversity┃

 Asset Management Company introduced a system to provide incentives for employees
who acquire certain qualifications.
 Status of qualification (incl. those unregistered) by employees of Asset Management
Company (as of April 1, 2020)

 More than half of our executives and employees are female, and female
employees are succeeding in a wide range of fields, regardless of being in
the front, middle, or back office.

• Licensed Real Estate Broker• ARES Certified Master• Certified Building Administrator

27
77• Real Estate Appraiser• Real Estate Consulting Master┃Flextime system and workstyles in the post‐COVID‐19┃

Number of executives and employees(excluding dispatched employees)

12April 2018

Male

Female(Percentage
of female)

Total

16

21

56.8%

37

Maternity or
child care leave

0

April 2019
15
23
60.5%
38
1
 Asset Management Company introduced a flextime system to support a more flexible workstylein line with the degree of activity.
April 2020
13
23
63.9%
36
1
 We will ensure both business continuity and employee safety during the COVID‐19 pandemicby allowing employees to choose between working at the head office and working from home,depending on their work conditions. (Established is a limit on the number of employees that can work at the head office due to physical distance requirements.)

IR Activities at 5th FP

ESG initiatives at Sponsor GroupWe are participating in other initiatives, such as online seminars, with fullconsideration of ways to prevent the spread of COVID‐19.

 Nurturing real estate business personnel through Karakusa Fudosanjuku(real estate business seminar ) at Sponsor GroupIR activities for individuals• June 2020:
Nikkei J‐REIT Infrastructure Fund Forum (Tokyo)

IR activities for institutional investors• Domestic: Visited 15 companies in urban areas and 5
companies in local areas• Overseas: Visited 11 companies in Hong Kong andSingapore and other locations• GlobalRecon2020 (Sponsored by Mizuho Securities)

Nikkei J‐REIT Infrastructure
Fund Forum Holding lectures at Real Estate Sustainability & Energy‐Efficiency Diffusion
Review Committee, Ministry of Land, Infrastructure, Transport and Tourism
 Holding lectures at Land Economy and Construction Industry Bureau,
Ministry of Land, Infrastructure, Transport and Tourism
 Contributing to ARES Real Estate Securitization Journal
 Serving as lecturer of ARES Real Estate Securitization Master training
course Promoting of teleworking
 Granting of scholarships to Yangon Technological University students
 Accepting technical trainees from overseas

35

ESG

ESG Initiatives (4) GovernanceDecision‐making Flow at Asset Management Company
 XYMAX REIT adopts a decision‐making flow via committees in which external committee members participate in matters that significantly impact unitholders’interests with the intention of protecting unitholders’ interests.
 At the REIT Compliance Committee and REIT Investment Committee, the attendance and approval of compliance officers and external committee members are
requirements for resolutions. Accordingly, a governance system has been established to prevent arbitrary management by the Asset Management Company.

Examination by complianceofficer

Proposal by division(s) inchargeUnapproved

Acquisition and transfer of assets
Entrustment of management tointerested parties, etc.

Rejected

Rejected

Deliberation and resolution by REIT
Compliance Committee *Expenditure exceeding a certain amount, etc.

Deliberation and resolution
by REIT Investment
Committee *Rejected

Deliberation andresolution by Board of
Directors’ Meeting

Relevant
approval
procedures

Matters other than the above, etc.

* Attendance and approval by external committee members and compliance officer are imperative for approval

Compliance Education at Asset Management Company
 Conducting a study session on compliance hosted by the complianceofficer once a quarter or more Intending to maintain and improve the knowledge on compliance aswell as fostering awareness on compliance of the employees of AssetManagement Company

Investment Ratio in XYMAX REIT by Sponsor
 Through the holding of XYMAX REIT’s investment units by the sponsor,
improvement in unitholder value is realized by matching the interests ofinvestors.*• Holding ratio of XYMAX REIT ’s investment units by sponsor*

5.6 %(as of August 31, 2020)36

〜Memo〜37

APPENDIXAPPENDIX

Overview of XYMAX Group
Company
nameOfficeRetail/Store

LogisticsHotel

XYMAX Corporation (unlisted)

Establish
ment

March 1, 1990
* Spin‐off from Recruit Co., Ltd. through employee

participatory MBO in 2000

Locationofheadquarters

1‐1‐1 Akasaka, Minato‐ku, Tokyo

Capital2,892.865 million yen(as of March 31, 2020)

Sales

100.831 billion yen(actual results for the fiscal year ended
March 2020)

Real estate consulting andmanagement services

Real estate consulting

Major
shareholders

XYMAX Shareholding Association, directors &employees, clients and financial institutions
Total: 315 (as of March 31, 2020)

Numberofemployees

6,501 (as of April 1, 2020)* Consolidated figures of the Group

Other specialized
services

Representative Director, Chairman & CEO:
Masafumi Shimada
Representative Director Kenji Yoshimoto

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX‐REALTY

Asset management
Asset strategy, etc.

Valormax
Y.Estate

Real estate
management
Property management
Building maintenanceIntegrated
management of
store facilities

SG Asset Max

Hokkaido

XYMAX HOKKAIDO

East JapanXYMAX ALPHA

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Abilitas Hospitality

Facility management* Consolidated figures of the Group

RepresentativeCRE strategy, effective
utilization,
development/design
Consulting and planning on
inheritance, fund procurement,
etc.

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

Realize growth of XYMAX REIT by drawing on all of
the XYMAX Groupʼs expertise and workforce

40

APPENDIX

Corporate History
Started Office Property Management Business
1982︓

1996︓

2000︓

Started the services such planning, development,
management for the Recruit Group’s own officebuilding investment and utilization after thecreation of the “Buildings‐related Division” of
Recruit Group.

Made a Full‐scale Entry to Retail Property Management BusinessStarted to provide the property management
service to corporate and private owners otherthan Recruit Group.

2001︓

Establishment of Retail Property Management Business Division of XYMAX

MBO from Recruit Group which gave birth to
XYMAX Group

Entry into Hotel‐related Business
2012︓

Acquired 100% stake of Abilitas Hospitality Co., Ltd.

Started Asset Management Business
2007︓

2000

2001

Started to provide hybrid
service of real estate andfinance by setting up MAX‐REALTY, a joint venture with
Sumitomo Mitsui Banking
Corporation.

2002

2003

2004

Made an entry into thebuilding management (BM)service by setting up XACUTechno Service Corporation, ajoint venture with Haseko
Anesis2005

Set up XYMAX Real Estate Investment Advisors Corporation

2006

2007

Enhanced the BM business byacquiring 100% stake of Asahi
Building Management
Services, Inc., a subsidiary of
the Daiei Inc.

2008

2009

2010

Entered into a business tie‐up
with SG Holdings Co., Ltd., aholding company of Sagawa
Express Co., Ltd.

2011

2012

2013

Started the private REIT
business through SG Asset
Max Co., Ltd., a joint venturewith SG Realty Co., LTD.

2014

2015

2016

Opened karaksa hotel Osaka
Shinsaibashi I and karaksa
hotel Kyoto I.

2017

2018

Made an entry into
the J‐REIT business

41

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked as No. 1 domestic service provider in the PM business in terms of contracting recordof real estate management projects for six years in a row since 2010*.
■ Human resources ︓1,995 people engaged in real estate management, 69 in leasing, and 82 in CRE related business(as of September 1, 2020)■ Relationship with real estate owners ︓ approximately 300 companies■ Track record in property sales and brokerage: ︓306 buildings, approximately 530 billion yen(accumulated total from April 1, 2010 to March 31, 2020)┃ Real estate management record
Actual number ofcontracts

939 buildings(As of the end of July 2020)29┃

Hokkaido ∙Tohoku Region

Gross floor area
Approx. 4.6 million tsubo（Approx. 15.0 million m2)

900

Central ∙ Koushin'etsu
Region┃ Facility management record (As of the end of June 2020) ┃Actual number ofcontracts

Approx.

Hokkaido Region

Number of customers

12,100 stores

134 companies

Tohoku Region
8

1,900

Central ∙Kanto Region
Chugoku ∙Koushin'etsu Region
4,900
Kanto Region
Shikoku Region
Kansai Region 64
536
Chugoku ∙700
Shikoku Region 221
14

Kyushu ∙Kyushu Region
Okinawa Region
58

Kansai Region

Okinawa Region

2,500

9

1,200

* According to each November issue of the monthly magazine Property Management from 2010 to 2015, the XYMAX Group was ranked No. 1 in terms of floor area under management for six

consecutive years since 2010.

41

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Confirming of completion of repair
work/Arranging payments

Construction work data

Arranging contractors/Obtaining
estimates/Assessing amounts

Accounting
ReportChecking /Reporting on status of items
requiring repair

Leasing Related
Operations

Repair planning

Report/Proposal

Preparation and submission of annual budgets

Owner

Preparation of monthly reports

XYMAX Group

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move‐in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from Property Management(acting for owners) to Building Maintenance operations.
In addition, the XYMAX Group owns all kind of data on real estate management through a track record accumulated over theyears.
┃ Areas of Real Estate Management Operations┃┃ Data Related to Real Estate Management ┃Contracted rent data

126,376cases
buildings(covering past 25 years)

Asking rent data

29,191 cases
buildings(covering past 9.5 years)

39,54455,053(during the period between April 1, 2000 and August 31, 2020)

150,053 cases

Building
Management

43

APPENDIXITBM Center
The XYMAX Group has built a support system that uses IT to achieve a high‐quolity building maintenance.

┃ＩＴＢＭ ＣＥＮＴＥＲ┃XYMAX ALPHA introduces information communication technology in building maintenance operations tomaintain and provide secure and safe conditions.
Creating a more advanced, higher quality, safer and more secure building maintenance framework and value.
XYMAX ALPHA has introduced an initiative called ITBM (Information Technology Building Maintenance) into
building management.

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

Desired information can be accessed anytime, anywhere from a
dedicated website

While they are stationed at the ITBM Center, TAs use their knowledge, technology,
and know‐how in building maintenance based on their experiences at various sites tobackup all site operations.

Information on managed properties as well as knowledge and information concerningbuilding maintenance operations are aggregated into a database. Information can beaccessed anytime, anywhere from devices at all sites.

Real‐Time Information Gathering During of an
Emergency or Disaster

Checking with and giving instructions to thesite by the ITBM CenterIn times of fires or natural disasters, information can be shared with therelevant divisions and head office functions on a real‐time basis using
video from smart devices connected on‐site with the ITBM Center.
Videos sent from the site can be shown on a large display. The
information can be used for real and accurate status reporting, as thevideos and audio exchanged between the both are recorded
automatically.
Video at the time of a fire in abuilding near a property managed by
the Company.
The video was linked to the ITBM
Center after people in the building
were safely evacuated. It was thenused in reporting the status to theowner and the head office.

Site facility staff (making the rounds/on‐site)

43

APPENDIX

Facility Management
The XYMAX Group conducts integrated management of retail stores of retail chains by providing services that substantiallyreduce the operational burden on store management.
Conventional store management

XYMAX store management system

Issues for clients
Each store• Shortage of manpower instore management• Optimization of cost andspecifications

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Orderplacement

24‐hour call center

InquiresBenefits of integrated management to clients
 Improving operational efficiency of store management• Introduce call center and store management system• Reduce management staff of headquarters

 Optimizing costs, improving quality• Consolidation of contractors, unification of specifications• Reduce fixed costs (contractor fees) of stores

 Ensure thorough compliance, response to government agencies

Service providers

Each store• Operations related to response to government agencies, routine inspection• Remedy of compliance violations

44

APPENDIX

Original Sourcing Strategy
XYMAX REIT captures the needs for real estate disposal gained from the huge customer base of the XYMAX Group.
In addition, XYMAX REIT grasps the trend of real estate owners at an early stage through daily communication, so that opportunities are created for external growth.

┃Direct relationship with real estate owners┃
XYMAX REIT

Acquisition
Trap disposal needs

 More than 70% of real estate owners are concerns over about large‐scale renovations of owned properties,
tenant management, and securing funds for reconstruction
 Identifies needs of property disposal arising due to the problem or concern about necessary funds
 Concern for inheritance and business succession tends to increase as real estate owners get older
 Identifies needs of property disposal upon business succession and inheritance by building owners

Asset Management Company
Realization of external growth
XYMAX Group

Survey on building owners’ situations by XYMAX Real Estate Institute┃Anxiety in future building business (by the number of owned buildings)┃

Owner relationship, customer base
General businesscompany

Building owners

Others3 buildings or moreManagement of tenants forlarge‐scale renovation andreconstruction
Securing funds for large‐scalerenovations and reconstruction

Financing
InheritanceROE management

Financing

30%

50%

20%

36%

42%

23%

1‐2 buildings

Measures against inheritanceand business succession

3 buildings or more
1‐2 buildings

24%

52%

30%

46%

3 buildings or more

16%

1‐2 buildings

20%
0%

39%

Percentage of client types for real estate management business(As of the end of July 2020)

Number ofproperties undermanagement

939

Others38.8%

J‐REIT
20.8%

Individual,
etc.
40.5%

● J‐REIT
J‐REITs including XYMAX REIT
● Individual, etc.
Individuals, asset management companies,
general business companies, etc.
● Others
Private REITs, private funds, real estatecompanies, etc.
Source: The asset management company based on material
provided by XYMAX Corporation

24%
45%

45%
20%

40%
Concerned┃Diversity among real estate owners┃

24%

35%
60%

80%

Slightly concerned

100%

Not concerned

Source: “Building Owner Survey 2017” by XYMAX Real Estate Institute┃Concerns over future building business (By age, multiple answers)┃
40 or younger

Management of tenants forlarge‐scale renovation andreconstruction

50‐59
60‐69
70 or older
40 or younger

Securing funds for large‐scalerenovations and reconstruction

50‐59
60‐69
70 or older
40 or younger

Measures against inheritanceand business succession

50‐59
60‐69
70 or older

0%

20%

40%
Concerned

60%
Slightly concerned

80%

100%

Not concerned

Source: Created by XYMAX Real Estate Institute based on the request from the asset management company

45

APPENDIXXYMAX Group’s track record of real estate disposals and real estate brokerage
External growth (number of cases, total amount and area) by capitalizing on track record in real estate
sales and brokerage.
Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results

To investment corporations, etc. */Whole
Disposals and sales
brokerage
Number of cases
Disposals andsales brokerage
Total

2.8%

36

306

Office9.8%
0.5%

Retail

8.9%
53.4%

8.9%

Logistics

11.8%
Land

4.1 billion yen

42.1%

4.9%
5.3%

residential

Other Tokyo
Metropolitan Area
Osaka Area
Nagoya Area

22.1%

Other

Fukuoka Area
Other

By asset (whole)(based on transaction price)

1.7 billion yen

Tokyo

Hotel

12.8%

Average perbuilding

23 Wards of Tokyo

14.1%

149.1 billion yen
530.0 billion yen

5 Wards of Tokyo

1.8%
0.8%

By area (whole)(based on transaction price) Source: XYMAX Corporation

Accumulated track record of real estate disposal and brokerage services(accumulated total from April 1, 2010, excluding sales to XYMAX REIT)(hundred million yen)

14.9 billion yen to investment corporation, etc./Whole 53.0 billion yen

6,000
5,500
5,000
4,500
4,000

(Actual results from April 1, 2010 to March 31, 2020 Fiscal year average)■ Sale and intermediary to other thaninvestment corporations, etc.

■ Sale and intermediary to investment
corporations, etc.

3,500
3,000

2,977

2,500

2,071

2,000
1,500
1,000

3,809

2,607

1,676

269

645
427

585

694

756

End of March2011

End of March2012

End of March2013

End of March2014

End of March
2015

500
0

934

1,251

3,323

1,075

1,148

End of March2016

End of March
2017

1,384
End of March
2018

1,482
End of March
2019

1,491
End of March
2020

Source: XYMAX Corporation* Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations46

APPENDIX

Accumulation and utilization of original data by XYMAX Real Estate InstituteTechnology/
information
providing

XYMAX
Group
business┃ Office market cycle in the 23 wards of Tokyo ┃Publicationof
information

XYMAX Real Estate
Institute Corp.

Mass media（ New contracted rent index ）Rent Index （100＝2010Q1）

180
Various media

2008Q2160

2020Q2

140

Posting, contribution and lectures to mass media and various
media (example)
 PostingNihon Keizai Shimbun, Nikkei Business Daily, etc.

 Contribution

ARES Real Estate Securitization Journal
The Japanese journal of real estate sciences

2001Q1

120

2003Q2100
80

2012Q2BUILDING TOKYO, etc.
 Lectures

Waseda University Advanced Collaborative
Research Organization for Smart Society
Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)WORKTECH
Tokyo Telework Promotion Center Joint study

Japan Facility Management Association (JFMA), etc.

 OtherTokyo Univ., Nihon Univ., Waseda Univ., Univ. of Hyogo, etc.
Participation in CRE at MIT in USA as an Industrial Partner

60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

（Vacancy rate︓％）

2019
Q2

2019
Q3

2019
Q4

2020
Q1

2020
Q2

Vacancy rate

0.87%

0.79%

0.78%

0.71%

1.01%

New
contracted
rent index

127

135

128

137

128

(Source) XYMAX Real Estate Institute Corp. (Vacancy rates for March 2011 and before arecalculated based on data from a major leasing brokerage company)

47

APPENDIX

Market Analysis (1)The scarcity of small‐ and medium‐scale office buildings will improve in the future, when considering the current limited
supply trend.
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower than that oflarge‐scale buildings and is highly stable revenues.
┃ Office Stock Pyramid 2020 covering the 23 Wards (net rentable area)┃
23 Wards of Tokyo: 12.96 million tsubo, 9,293 buildings, average building age: 31.6 years

floor area: 5,000 tsubo or more)
Whole: 6.89 million tsubo,755 buildings, 23.6 years on average

1.52 million tsubo (25%)

55

Large‐scale office buildings(total floor area: 5,000 tsubo or more)

180
Q1: Jan. – Mar.
Q2: Apr. – June
Q3: July – Sept.
Q4: Oct. – Dec.

160

129

140

Old seismic standard:

50

Small‐ and medium‐scale office buildings(total floor area: less than 5,000 tsubo)

190

Large‐scale office buildings (Gross

60

Old seismic standard:

Rent Index (100＝2010 Q1)
200

Small‐ and medium‐scale office70buildings (Gross floor area: 300‐5,000 tsubo)65
Whole: 6.07 million tsubo,
8,538 buildings, 32.3 years on average┃New contracted rent by office building scale┃

1.14 million tsubo(17%)

146

120

45

35
30
25

20 years or older:

5.00 million tsubo (82%)

20
15Building age (years)

40

80

20 years or older:3.40 million tsubo (49%)

50

40

30

Less than 20 years:
3.49 million tsubo (51%)

5

1.07 million tsubo (18%)
20

0
10

0

76

60

10

Less than 20 years:

124

79

100

10

20

30

Rentable area (million tsubo).
Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Office Stock Pyramid 2020”

40

50

2019
Q2

2019
Q3

2019
Q4

2020
Q1

2020
Q2

Small‐ and medium‐scale
office buildings (total floorarea: less than 5,000 tsubo)

125

135

129

139

129

Large‐scale office buildings(total floor area: 5,000
tsubo or more)

118

127

127

132

124

Source: Survey Report by XYMAX Real Estate Institute Corp.
“Office Market Report Tokyo Q2 2020”

48

APPENDIX

Market Analysis (2)XYMAX REIT believes that there will be robust tenant demand within the range of 10,000 to 20,000 yen in general, regardless of the market
environment.
XYMAX REIT believes that there is a clear correlation between convenient locations (the time required to walk to the nearest station) and theoccupancy rate.
┃Vacancy rate by time required to walk to the nearest┃Distribution of contracts concluded in the 23 Wards ofstation in the 23 wards of Tokyo┃
Tokyo (by unit price of contracted rent) ┃
（%）
20
18
16
14
12
8
6
4
2
0

Large segments ofcontracts concludedin the market

（%）
20
18
16
14
12
8
6
4
2
0
（%）
20
18
16
14
12
8
6
4
2
0

Jan.‐Mar.2010
Number of cases: 1,287
Number of targeted properties: 1,031

（％）

14.0%
All locations (combined)

12.0%

Within a 3‐miunte walk to the nearest station
3–5 minute walk to the nearest station
More than a 5‐minute walk from the nearest station

10.0%

Apr.‐June. 2012
Number of cases: 593
Number of targeted properties: 568

8.0%

6.0%

Apr.-Jun. 2020

4.0%

Number of cases: 622
Number of targeted properties: 577

2.0%

0.0%

Unit rent (yen/tsubo)■■ Apr.-Jun. 2019■■ Apr.-Jun. 2020

Source: Created by XYMAX Real Estate Institute uponrequest of Asset Management Company

Source: Created by XYMAX Real Estate Institute upon the request of Asset Management Company

49

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work‐style reform┃Workplace service enabling free work‐style┃April, 2020:
ZXY Tameike Sanno opened. It also plays the role of model office where customers can experience various types of ZXY.

「GOOD DESIGN BEST 100」
受賞
ZXY ShareZXY ShareLocation of workplaces

ZXY Monthly

ZXY Kids SpaceChange in number of memberships and workplaces
Workplaces

Members

300,000
250,000

Number of workplaces(workplaces)

75
69 72

200,000
150,000
100,000
50,0000120

Number of members (members)

84
80 81 83

94
89 92

100

293,111 80
290,222259,95658
54 54 55

224,079
228,361
214,706
217,210
223,689
220,495
226,942
212,129
219,934
212,954
209,150

60
40
20
0

Source: XYMAX Corporation

50

APPENDIXXYMAX Group’s Expanding B to C Business Activities（Karaksa Hotels）
The Groupʼs own brand “Karaksa Hotels” also meeting the needs for overseas tourism.
Osaka
Mar. 2016
Jan. 2017
Nov. 2017
Nov. 2019
To be opened

Hokkaido
69 rooms karaksa hotel Osaka Shinsaibashi *139 rooms karaksa Spring hotel Kansai Air Gate *112 rooms karaksa hotel Osaka Namba *396 rooms karaksa hotel grande Shin‐Osaka Tower *176 rooms

177 rooms karaksa hotel Sapporo *140 rooms

Jan. 2018
To be opened

Kyoto
Mar. 2016 36 rooms
karaksa hotel Kyoto I *karaksa hotel grandeShin‐Osaka Tower

Chibakaraksa hotel Osaka Namba

To be opened 190 rooms
karaksa hotel Sapporo

 Change in number of hotels developed andhotelsoperated and number of guestrooms

15

2,000

Number of hotels
Number of guestrooms

1,908

1,600

karaksa hotel premier Tokyo Ginza

10
karaksa hotel Kyoto I

1,200

1,137

13
533

5

Tokyo
karaksa hotel TOKYO STATION

OpenedTo be openedrooms

May 2019
Jul. 2019
To be opened
To be opened

57 rooms karaksa hotel premier Tokyo Ginza *151 rooms karaksa hotel TOKYO STATION *103 rooms
162 rooms

356
105

0

2

4

2016

2017

8
5
2018

400
0

To be
openedSource: XYMAX Corporation (as of April 2020)* As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that XYMAX REIT will acquire them in the future.

2019

800

51

APPENDIX

The source of power to maximize unitholder value;XYMAX REIT's “3 strengths”
XYMAX REIT will maximize unitholder value by utilizing the three real estate management strengths of its sponsor, the
XYMAX Group.

“3 strengths” of XYMAX REIT

Assessment

 Through combining our knowledge gained through real estate management experiencethroughout Japan and an analysis of a huge amount of unique real estate data held by thesponsor group, we will accurately determine the market positioning of a target property,
upon estimating the appropriate level of rent and management costs for such property.

Management

 Through daily unfettered discussion, we will perform management which directly utilizes
various expertise of the sponsor group as well as input from the frontline. With close
communication with the frontline enabling quick decisions, we will maximize property
potentials, together with ensuring opportunities for internal growth.
 Utilizing the sponsor group’s direct communication with real estate owners, we will seize
property acquisition opportunities in exclusive transactions for sure.

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
52

APPENDIX

Portfolio List (1)Asset no.

OF‐01

OF‐02

OF‐03

OF‐04

OF‐05

OF‐06

OF‐07

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi‐Shimbashi Building

XYMAX Iwamotocho Building

XYMAX Shinjuku‐Gyoen Building

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building

XYMAX Higashi‐Ueno Building

XYMAX Hachioji Building

Location

Minato‐ku, Tokyo

Chiyoda‐ku, Tokyo

Shinjuku‐ku, Tokyo

Minato‐ku, Tokyo

Minato‐ku, Tokyo

Taito‐ku, Tokyo

Hachioji‐shi, Tokyo

3 minutes on foot from
Iwamoto‐cho station on the
Toei Subway Shinjuku line

2 minutes on foot from
Shinjuku Gyoenmae stationon the Tokyo metro
Marunouchi line

1 minute on foot from
Kamiyacho station on theTokyo metro Hibiya line

5 minutes on foot from
Akabanebashi station on the
Toei Subway Oedo Line

3 minutes on foot from Naka‐
Okachimachi station Tokyo
metro Hibiya line

7 minutes on foot from
Kamiyacho station on theTokyo metro Hibiya line

4 minutes on foot from JR
Okachimachi station, andother

5 minutes on foot from JR
Hachioji station

3 minutes on foot from
Uchisaiwaicho station on the
Toei Subway Mita line

Access6 minutes on foot from
Shimbashi station on the JRTokyo metro Ginza line , andother

4 minutes on foot from Keio
Hachioji station on the Keio
Electric Railway Keio Line

Acquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

2,600

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

1,220.58 ㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

7,404.81㎡

Leasable area

1,897.75㎡

4,152.30㎡

4,792.13㎡

1,205.29㎡

2,016.00㎡

1,735.34㎡

5,556.03㎡

Completion

2000

2001

2001

1991

1999

1999

1993

Structure/Numberof Floors

Reinforced concrete structurewith flat roof 9F

Steel‐framed reinforced
concrete structure with flat
roof B1F/9F

Steel‐construction /Reinforced concrete structurewith flat roof B1F/9F

Steel‐construction with flat
roof 8F

Steel‐framed reinforced
concrete structure with flat
roof B1F/9F

Steel‐framed reinforced
concrete structure with flat
roof 8F

Steel‐framed reinforced
concrete/ Steel‐construction
with flat roof B1F/9F

Number of tenant(As of the end of 5th FP)

8

14

6

7

4

8

23

Occupancy rate
(As of the end of 5th FP)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

95.7%

53

APPENDIX

Portfolio List (2)Asset no.

RT‐01

RT‐02

RT‐03

RT‐04

HT‐01

OT‐01

Asset type

RetailRetailRetailRetailHotel

Other (Residential)

Property nameMuza Kawasaki

Life Kawasaki Miyuki Store

Vita Seiseki‐Sakuragaoka

Life Fukuizumi Store

Hotel Vista Sendai

Renaissance 21 Chihaya

Location

Kawasaki‐shi, Kanagawa

Kawasaki‐shi, Kanagawa

Tama‐shi, Tokyo

Sakai‐shi, Osaka

Sendai‐shi, Miyagi

Fukuoka‐shi, Fukuoka

4 minutes on foot from JR
Sendai station
1 minute on foot from
Miyagino Dori station on the
Sendai City Subway Tozai Line

6 minutes on foot from
Chihaya station on the JR
Kagoshima main line andNishitetsu Chihaya station on
the West Nippon Railway
Kaizuka line

Access

JR Kawasaki station directconnection

15 minutes on foot from JR
Kashimada station and YakostationKeio Electric Railway Keio Line
Seiseki Sakuragaoka Station
Directly Connected

12 minutes on foot from Otori
station on the JR Hanwa line

Acquisition price(million yen)

4,100

790

3,100

1,065

4,400

2,700

Land area

742.44 ㎡ *1

1,879.15 ㎡

4,467.51 ㎡ *2

6,225.21 ㎡

1,461.36 ㎡ *3

2,644.63 ㎡

Total floor area

3,671.09㎡ *1

2,596.80㎡

27,161.00㎡ *2

3,358.26㎡

6,977.47㎡

10,856.15㎡

Leasable area

3,703.87㎡

2,677.54㎡

27,610.61㎡

3,309.29㎡

7,066.25㎡

10,287.93㎡

Completion

2004

1997

1999

1996

2016

2006

Steel‐construction with flat
roof 2F

Steel‐construction with flat
roof 12F

Steel‐construction with flat
roof 12F

Structure/Number of
FloorsSteel‐framed/Steel‐framed
reinforced concrete structurewith flat roof/stainless steel
plate roofing B2F/27F

Steel‐construction with flat
roof 2F

Steel‐framed reinforced
concrete structure/reinforced
concrete structure/steel‐construction withflat roof B3F/27F

Number of tenant(As of the end of 5th FP)

18

1

1

‐

1

133

Occupancy rate
(As of the end of 5th FP)

100.0%

100.0%

100.0%‐

100.0%

96.7%*1 Land area indicates the figure equivalent to 6.9% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Muza Kawasaki. In addition, building area indicates the total building area based on the real estate registry for the components the trust

beneficiary rights held by the Investment Corporation.
*2 Land area indicates the figure equivalent to 49.6% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Vita Seiseki‐Sakuragaoka. In addition, building area indicates the total building area based on the real estate registry for the components thetrust beneficiary rights held by the Investment Corporation (floor area of 2 jointly‐owned components, building No. 72‐3 and 72‐7 is the figure multiplied by ownership ratio of 937,995/1,000,000 and 591,485/1,000,000, respectively), and is rounded down to the second decimal place.
*3 Superficies have been established for 524.21 m2 of the land area.

54

APPENDIX

Portfolio Map
Portfolio located in favorable locations┃ Tokyo Economy Area ┃┃ Tokyo Area ┃OF‐07 XYMAX Hachioji Building

RT‐01 Muza Kawasaki

OF‐6 XYMAX Higashi‐Ueno Building

RT‐02 Life Kawasaki Miyuki Store

RT‐03 Vita Seiseki‐Sakuragaoka┃ Osaka Area ┃OF‐02 XYMAX Iwamotocho Building
OF‐03 XYMAX Shinjuku‐Gyoen Building

RT‐04 Life Fukuizumi Store┃ Fukuoka Area

┃ Sendai Area ┃OT‐01 Renaissance 21 Chihaya

OF‐01 XYMAX Nishi‐Shimbashi Building
OF‐04 XYMAX Kamiyacho Building
OF‐05 XYMAX Higashi‐Azabu Building
HT‐01 Hotel Vista Sendai

OfficeRetailHotel

Others（Residential）

55

APPENDIX

Investment Ratio and Advantage by Asset Type

8.2%
13.3%

54.3%

24.2%

■Office■Retail■Hotel■Others■Main asset

21.5%
43.0%

*The breakdown is basedon the acquisition price

32.1%

Average unit rent 16,277 yen / tsubo

Time required from the nearest station■10,000 yen ‐ 15,000 yen■15,000 yen ‐ 20,000 yen■20,000 yen ‐

31.8%
43.4%

*As of the end of August 2020**Excl. rents of stores, parking lots, etc.
***Unit rent incl. CAM

24.8%■5 wards of Tokyo**■23 wards of Tokyo excl. 5 wards■Tokyo economy***■Designated cities■Tokyo metropolitan area

*The breakdown is based on theacquisition price**Chiyoda, Chuo, Minato, Shinjuku andShibuya wards within Tokyo.
***Tokyo (excl. 23 wards of Tokyo), and78.5% prefectures of Kanagawa, Saitama, andChiba.

3.5%

91.8%

OfficePercentage by year engaged by XYMAX Group

Percentage by geographic area

Percentage by asset type

10.8%
27.8%

Average

22.7%

14.5
years
30.4%

Average■Less than 3 minutes■3〜5 minutes

min.

*The breakdown is based on theacquisition price and averageshows the simple average

平均3.0
3.0分

76.9%

*The breakdown is based on theacquisition price and averageshows the simple average
91.8%

Average engagement period
19.9%

23.1%

■Less than 5 yrs.
■ 5〜10 yrs.
■ 10〜15 yrs.
■ 15〜20 yrs.
■ Over 20 yrs.
■ Over 5yrs.

8.2%

Average

平均18.2
17.2年

years

51.6%

■10 years or more andless than 15 years■15 years or more andless than 20 years■20 years or more
*The breakdown is based on theacquisition price and averageshows the simple average

28.4%（+3.9％ vs. end of February 2020, 15,661 yen ）9.9%■Station‐front■Other■Neighborhood *1*The breakdown is based on theacquisition price

90.1%

Average engagement period

Average

平均11.1
12.1 年
61.2%

years

38.8%

■5 years or more andless than 10 years■10 years or more
*The breakdown is based on theacquisition price and averageshows the simple average

100%*1 Retail facilities for which the majority of customer can easily come on foot or by bicycle in a short time.

Percentage of specialized in Stay
Specialized in Stay
宿泊特化型

Hotel

RetailComposition of retail properties*The breakdown is based on
the acquisition

100.0%

56

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（1/2）(thousand yen)

Nishi‐Shimbashi

Iwamotocho

Shinjuku‐Gyoen

Kamiyacho

Higashi‐Azabu

Higashi‐Ueno

Hachioji

Operating revenue fromreal estate leasing

81,244

145,755

182,067

51,19959,07547,093130,227

Lease business revenue

75,810129,611

170,022

36,42452,964

41,528114,052

Other lease businessrevenue

5,433

16,163

12,045

14,774

6,110

5,564

16,175

Operating expenses fromreal estate leasing（Excluding Depreciation）

17,68836,40139,30029,855

21,904

14,98935,064

Tax and public dues

6,949

13,41914,466

4,677

6,640

3,684

8,383

Maintenance fees

5,314

10,424

11,709

4,468

5,912

4,214

15,628

Utility expenses

3,933

7,914

7,921

2,087

2,738

2,857

7,415

Repair expenses

503

2,755

3,802

9,658

5,451

1,778

1,072

Insurance premiums

62

221

213

46

82

60

276

Other expenses related
to rent business

926

1,665

1,188

8,917

1,078

2,392

2,288

ＮＯＩ

63,555

109,373

142,766

21,34337,171

32,104

95,163

Depreciation

2,626

11,976

10,359

1,316

5,086

3,053

9,185

Operating income(loss) from real estateleasing

60,92897,397

132,407

20,02632,08429,05085,977

57

57

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（2/2）(thousand yen)

Muza

Kawasaki Miyuki

Seiseki‐Sakuragaoka

Sendai

Chihaya

Total

Operating revenue fromreal estate leasing

171,491

undisclosed

undisclosed

141,284

108,322

1,364,523

Lease business revenue

153,120

undisclosed

undisclosed

141,284

100,614

1,258,613

Other lease businessrevenue

18,370undisclosed

undisclosed

‐

7,707

105,909

Operating expenses fromreal estate leasing（Excluding Depreciation）

39,954

undisclosed

undisclosed

20,21031,401

340,020

Tax and public dues

10,586undisclosed

undisclosed

11,095

8,635

133,746

Maintenance fees

14,885undisclosed

undisclosed

1,800

7,960

84,120Utility expenses

13,436undisclosed

undisclosed

‐

1,595

49,901

Repair expenses

323

undisclosed

undisclosed

450

2,429

31,670Insurance premiums

192

undisclosed

undisclosed

217

296

3,541

Other expenses related
to rent business

529

undisclosed

undisclosed

6,647

10,48437,040131,536

21,788

171,705

121,074

76,9201,024,502

Depreciation

17,368

1,547

15,541

31,407

19,755

129,226

Operating income(loss) from real estateleasing

114,167

20,240156,164

89,66757,164895,276

ＮＯＩ

58

58

APPENDIX

Overview of Appraisal Report
Asset
no

Asset nameBook value as ofAcquisition price
Acquisition date (million yen) the end of 5th FY(million yen)

End of 4th FY(February 29, 2020)

End of 5th FY(August 31, 2020)

Capitalization rate
Appraisal
based on direct
value (million
capitalizationyen)method (%)

Capitalization rate
Appraisal
based on direct
value (million
capitalizationyen)method (%)

ChangeAppraisalvalue *1
(million yen)

Unrealized profit orloss *3 (million yen)Appraiser

Capitalization rate
based on direct
capitalization
method *2 (%)

The Tanizawa Sōgō

OF‐01

XYMAX Nishi‐Shimbashi Building

February 2018

2,500

2,518

3,110

3.7

3,120

3.7

10

‐ Appraisal Co., Ltd.

OF‐02

XYMAX Iwamotocho Building

February 2018

4,250

4,363

5,720

3.5

5,730

3.5

10

‐ Japan Real Estate Institute

1,366

OF‐03

XYMAX Shinjuku‐Gyoen Building

February 2018

5,020

5,065

7,200

3.5

7,200

3.5

‐

‐ Japan Real Estate Institute

2,134

OF‐04

XYMAX Kamiyacho Building

February 2018

880

891

1,190

3.8

1,200

3.8

10

‐ Appraisal Co., Ltd.

OF‐05

XYMAX Higashi‐Azabu Building

February 2018

1,550

1,604

2,160

3.8

2,140

3.8

‐20

‐ Co., Ltd.

OF‐06

XYMAX Higashi‐Ueno Building

February 2018

1,150

1,176

1,600

3.9

1,620

3.9

20

‐ Co., Ltd.

443

OF‐07

XYMAX Hachioji Building

February 2018

2,600

2,591

3,590

4.8

3,590

4.8

‐

‐ Japan Real Estate Institute

998

RT‐01

Muza Kawasaki

February 2018

4,100

4,105

5,380

4.1

5,380

4.1

‐

‐ Appraisal Co., Ltd.

RT‐02

Life Kawasaki Miyuki Store

February 2018

790

795

975

4.2

975

4.2

‐

‐ Co., Ltd.

RT‐03

Vita Seiseki‐Sakuragaoka

February 2018

3,100

3,304

3,930

5.0

3,910

5.0

‐20

‐ Appraisal Co., Ltd.

HT‐01

Hotel Vista Sendai

February 2018

4,400

4,307

5,480

4.7

5,210

4.9

‐270

0.2 Appraisal Co., Ltd.

OT‐01

Renaissance 21 Chihaya

February 2018

2,700

2,765

3,130

5.0

3,150

5.0

20

‐ Appraisal Co., Ltd.

33,04033,491

43,465‐43,225‐‐240

Total ／Average

601

The Tanizawa Sōgō

308

Daiwa Real Estate Appraisal

Daiwa Real Estate Appraisal

The Tanizawa Sōgō

1,274

Daiwa Real Estate Appraisal

The Tanizawa Sōgō

179
605

The Tanizawa Sōgō902

The Tanizawa Sōgō

‐

535

384
‐

9,733

*1 The difference between the estimated value at the end of the 4th FP and the estimated value at the end of the 5th FP is indicated.
*2

The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 4th FP and the direct capitalization rate adopted
in the real estate report for each portfolio asset in the calculation of estimated value at the end of the 5th FP is indicated.
*3
The difference between the book value at the end of the 5th FP and the book value at the end of the 5th FP for is indicated.

59

APPENDIX

Balance Sheet and Statement of Income
Balance Sheet
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other

Non‐current assets
Property, plant and equipment
Tools, furniture and fixtures
Buildings in trust
Structures in trust
Tools, furniture and fixtures in trust

Land in trust
Construction in progress in trust
Investments and other assets
Long‐term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other

Liabilities
資産合計
Current liabilities
Operating accounts payable
Short‐term loans payable
Current portion of long‐term borrowings

Accounts payable ‐ other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Non‐current liabilities
Long‐term loans payable
Tenant leasehold and security
deposits in trust

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus

Total net assets
Total liabilities and net assets

4th fiscal period(As of Feb. 29, 2020)(thousand yen)

5th fiscal period(As of Aug. 31, 2020)(thousand yen)

2,958,929
1,005,416
1,895,489
23,90433,746372
33,628,935
33,476,361
53,2448,759,344
49,391
8,108
24,606,271
152,574
41,111
16
22,60088,84736,587,864
3,547,233
90,363814,000
2,336,000
90,777937
29,347
183,695
2,112
9,782,973
8,530,000

3,051,092
1,022,211
1,974,404
21,64232,279554
33,665,883
33,497,350
39,8378,770,285
50,411
25,03424,606,271
5,511
168,532
39,05811
22,600106,862
36,716,975
3,618,707
125,758
814,000
2,336,000
105,716841
34,459198,430
3,501
9,788,186
8,530,000

1,252,973

1,258,186

13,330,207

13,406,893

23,257,657
22,585,746
671,91123,257,657
36,587,864

23,310,082
22,585,746
724,336
23,310,082
36,716,975

Statement of Income
Operating revenue
Lease business revenue
Other lease business revenue

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses

Operating income
Non‐operating income
Interest income
Insurance payment received
Non‐operating expenses
Interest expenses
Borrowing related expenses

Ordinary income
Income before income taxes
Total income taxes
Income taxes ‐ current
Income taxes ‐ deferred

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

4th fiscal period(As of Feb. 29, 2020)(thousand yen)

1,343,421
1,240,652
102,769
619,206
500,341
76,442
824
8,936
2,400
30,261
724,215
4,662
14
4,647
56,05834,09821,960672,819
672,819937
939-2671,88229
671,911

5th fiscal period(As of Aug. 31, 2020)(thousand yen)

1,364,523
1,258,613
105,909592,560
469,247
78,106
823
9,932
2,400
32,050771,96214
14
46,94036,745
10,194
725,036
725,036848
843
4724,188147
724,33660

APPENDIX

Change in investment unit price┃ Change in investment unit price ┃ As of October 9, 2020
（yen）

145,000

XYR

140,000

Tokyo Stock Exchange REIT Index

135,000
130,000
125,000
120,000
115,000
110,000
105,000

Issue price 105,000 yen

100,000

Closing price 96,500 yen

95,000

As of October 9, 2020

90,00085,00080,00075,00070,0002018
2/15 3/15
2/15

4/15 5/15

6/15 7/15

8/15

9/15 10/15 11/15 12/15 20191/15 2/15 3/15
1/15

4/15 5/15

6/15 7/15

8/15

2020 2/15 3/15
9/15 10/15 11/15 12/15 1/15
1/15

4/15 5/15

6/15 7/15

8/15

9/15

* The Investment Corporation has indicated the issue price with 105,000 yen as the starting point and indexed the Tokyo Stock Exchange REIT Index based on the opening price as of February 15, 2018.

61

APPENDIX

Status of Unitholders
Major Unitholders

Share of investment units by owner type■Individuals, other ■Financial institutions ■Other domestic companies■Overseas institutions, etc. ■Securities companies

2nd FP

3rd FP

12.9%

4th FP

12.6%

5th FP

Name
9.4%

53.0%

15.1%

9.4%

51.1%

10.0%

47.3%

21.7%

19.8%

21.8%

27.4%

9.1%

46.1%

16.4%

Number of unitholders by owner type
2nd FP

3rd FP

4th FP

5th FP

Individuals, other

4,220

3,892

4,089

5,889

Financial
institutions
Other domestic
companies
Overseas
institutions, etc.
Securities
companies

37

40

37

38

107

88

90

125

70

76

79

62

16

21

23

24

4,450

4,117

4,318

6,138

Total

Note: As of August 31, 2020

*The ratio of unitholders is rounded down to the second decimal place.

2.7%

Number ofinvestment
units(unit)

Ratio*(%)

Custody Bank of Japan, Ltd. (Trust account)

37,994

17.00

4.7%

The Master Trust Bank of Japan, Ltd.
(Trust account)

25,994

11.63

4.8%

XYMAX Corporation

12,500

5.59

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

10,296

4.60

BNP PARIBAS SECURITIES SERVICES FRANKFURT / JASDEC /SGSS DEUTSCHLAND KAPITALANLAGEGESELLSCHAFT MBH
FOR REIT ASIEN 1

8,491

3.80

Custody Bank of Japan, Ltd.
(Securities investment trust account)

7,621

3.41

SCBHK AC LIECHTENSTEINISCHE LANDESBANK AG

5,711

2.55

The Bank of Yokohama, Ltd.

5,238

2.34

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTSM LSCB RD

3,704

1.65

Aozora Bank, Ltd.

3,508

1.57

121,057

54.18

4.6%

Total

62

APPENDIX

Overview of Asset Management Company
Overview
Company name

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

General Meetingof Shareholders

Location

XYMAX Akasaka 111 Building, 1‐1‐1 Akasaka, Minato‐ku, Tokyo
AuditorEstablishment

August 6, 2007

Capital

0.2 billion yen

Board of Directors

Major shareholders
Number of
employees

Compliance Committee

REIT Compliance Committee

Investment Committee

REIT Investment Committee

Internal Audit Team

Compliance OfficeCompliance Officer

XYMAX Corporation (100% stake)32 (as of April 1, 2020)(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act

Lines of business(2) Real estate investment advisory business and discretionary realestate investment business(3) Asset management business for investment corporation
Nobuhito Inatsuki, Representative Director and President

Executives

Yasushi Yamaguchi, Director

Representative

Kazuya Sugimoto, Director

Director

Shigeki Kawakita, Auditor
Financial instruments business: Director‐General of the Kanto Local Finance Bureau
Registration (FIBO) No. 1907 (Investment Management Business, Investment Advisory
and Agency Business, and Type II Financial Instruments Business)

Licenses

Discretionary transaction agency, etc. business: Minister of Land, Infrastructure,
Transport and Tourism Approval No. 118
Real Estate Specified Joint Enterprise: License No. 75 granted by Commissioner of the
Financial Services Agency and Minister of Land, Infrastructure, Transport and Tourism(for businesses referred to in items (iii) and (iv))
Real estate investment advisory business: Registration No. Sogo‐57
Real estate brokerage business: Governor of Tokyo License (3) No. 88223

Private Investment
Management
Department

Business
Development
Department

Business
Administration
Division

REIT
Management
Division

Business
Planning
Division

63

Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”)
and is not intended to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to bemade using your own discretion and responsibility.
Purchase, sale and such of XYMAX REITʼs investment units entail the risk of incurring a loss due to fluctuations in the investment unit price.
Please consult with your securities company regarding the purchase of XYMAX REITʼs investment units or investment corporation bonds.
Information presented in this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or an asset
management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
XYMAX REIT and XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the “Asset Management Company”) to which XYMAXREIT entrusts the management of its assets are taking all possible measures to make the information contained in this document the best
available. However, no assurances can be given regarding the accuracy, validity and completeness of the information, regardless of whether it isinformation prepared by XYMAX REIT or the Asset Management Company, or information received from a third party.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking
statements presented by XYMAX REIT or the Asset Management Company according to assumptions or judgement based on information
available as of the date of this document (the date if specified otherwise in the document). Forward-looking statements are based onassumptions such as the investment policy of XYMAX REIT, applicable laws and regulations, market environment, interest rate environment,
business practice and other factors as of the preparation date of this document, and do not reflect or consider changes in situations after the
preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks, unknown risks and other factors, andmay materially differ from actual performance, business results, financial status and such of XYMAX REIT. Although this document includes
statements concerning future performances, expectations and other forecasts, such statements do not guarantee the future performances,
expectations and other forecasts.
The content of this document is subject to change or repeal without prior notice. XYMAX REIT and the Asset Management Company are under
no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of XYMAX REIT or the Asset Management
Company is strictly prohibited.

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